2017 (1) TMI 1714

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....led a return of income disclosing an income of Rs. 3,78,769/-. Assessee had sold a property on 04.03.2011 for a sum of Rs. 3,20,00,000/-. The said property was purchased on 01.02.2006. Assessee computed long term capital gain arising from the above transaction as under:- Sale consideration Rs. 3,20,00,000/- Less:   Purchase Value Rs. 1,48,00,000/- Stamp duty  Rs. 11,84,000/- Reg. Charges Rs. 1,48,100/-   -------------------   Rs. 1,61,32,100/- Cost of improvement Rs. 15,00,000/-   -----------------   Rs. 1,76,32,100/-   Indexed cost of acquisition:   Rs. 2,52,24,191/- Interest on housing loan:   Rs. 63,98,540/- &n....

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....rable ITAT has held that such interest paid on the housing loan can be included while computing capital gains. In fact, in the said case, the taxpayer had claimed the interest as deduction, in that year's when the asset was held by the taxpayer and still the Honourable Tribunal held that the interest can be claimed as cost of acquisition, on the reasoning that both are under different heads of income. However, as contended, in the present appellant's case, she had not claimed the interest as deduction, in the years when the asset was held by her. As such, it was pleaded that the possibility of any double deduction on this score did not arise at all. I find force in the above submissions of the appellant and the case law relied upon ....

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....ssions of both parties at length and also perused the relevant findings of the Assessing Officer as well as CIT(A). Regarding the issue of capital gains, it transpires that there is hardly any dispute that the assessee had availed the loan for purchasing the property in question. Since the assessee had shown the income under the head 'house property', he preferred to raise the claim of deduction under section 24(b) of the "Act", which reads as under: "(b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:" There is no quarrel that since the assessee's claim of deduction was under the statutory provisions; therefore, he s....